MIL no pension- What happens when FIL dies?

[GummyBunting]

I've been googling this and I'm still confused.

MIL does not get a state pension as she's never worked/ made NI contributions. They both live off FIL's pension.

What happens if FIL dies? Does MIL take on his pension? Does she get nothing?

I believe she would get a small pension topped up by prison credits. There is a minimum income guarantee. You could speak to cab if you are worried.
Do you think fil may die soon?

My mother (1920's vintage) gets a widow's pension, based on my father's NI contributions and (separately) based on his company pension. I understand this was a lot more common, in the days when women were sacked, or required to resign, when they got married. Sigh.

No I don't think FIL will die soon. Or MIL for that matter.
But FIL is 70 and MIL 60, so there's a higher chance that FIL may go first.

This does sound a bit crass I realise, but my DGF died recently and my DGM is struggling even though she has her own civil service pension. It just got me thinking.

I had awful visions of her getting nothing except a bus pass.
I'm also a little worried that MIL will have to live with us, if I'm honest.

MIL will get her state pension when she is 65 won't she. FIL works pension should still be paid out to his widow. Why do you think MIL will have to live with you?

Or 67 depending on her DOB.

Might be earlier, sorry for the confusion. There's a calculator on the Governments website anyway.

Your MIL may receive some pension from your FIL if he dies before her. (disclaimer: Check this)

Pension credit is a top up means tested benefit to bring someone up to the standard minimum guarantee for their situation. But you're only eligible when you reach the state pension age for women, which will be a way off for your MIL. Nevertheless, whenever it happens, it would be worth her having a benefit check.

Are you sure she won't get a state pension? Get her to ask for a state pension forecast as it will tell her how many qualifying years she has and how much pension she'd get. If she's short of qualifying years she can choose to top it up herself.

Qualifying years can be years working or caring for children etc - if she's never worked it doesn't necessarily follow that she'd get no state pension,

i presume your FIL has a private pension. When it was set up he might have had the choice to set it up with a dependent's/spouse's benefit e.g it could pay out 100% or a specified % to your MIL on your FIL's death.

He may also have a guarantee period or value protection feature.

Equity Release could be an option if you don't want her moving in with you!

Can't say I'm an expert, but agree that she needs to ask for a state pension forecast, sooner rather than later. It's all about to change, but AFAIK everyone receives a state pension once they reach a certain age. There is then an additional amount that you get, depending on how many years you made NI contributions. But even if you haven't worked, and therefore haven't paid NI yourself, you are credited with NI for any year that you claimed Child Benefit. So your MIL may have some qualifying years due to that. I'm not sure how the imminent changes will affect that, but she definitely needs the forecast so that she can find out.

There is also an option for those nearing retirement age to 'buy' additional pension years, by paying a lump sum now and getting qualifying years added to their pension. There is some discussion about whether this is worth doing (moneysavingexpert.com might have some advice), but the bottom line is that if your MIL finds out now what she's likely to be entitled to, she will be in a better position and can make plans.

However, I'm not sure what would happen if your FIL died before your MIL reached retirement age. Again, a good question to ask a professional!

Not everyone receives a state pension when they reach pension age. But can apply for means tested pension credit. If a woman is left a widow and is under retirement age a widow's pension is only paid for one year AFAIK. I was pretty shocked to hear this myself. Your MIL should be credited with some years towards her state pension if she received child benefit.

She will get pension credits to top up her state pension. Many women are in this situation. She won't be the only one.

Oh I saw you say there's a chance she will need it before 65? Are you sure? I thought they are slowly raising it and currently it's still sometime between 60 and 65 for women at that age?

Otherwise, I assume she'll need to get a job just like everyone else? Surely if you have no money, you aren't expected to just sit there and do nothing.

I'm also a little worried that MIL will have to live with us, if I'm honest.

Sorry not reading properly.

Don't worry. She'll be entitled to housing benefit. Do not let her live with you. She will be on the lowest priority for a council house if she lives with you. (Band 4 where we are). But if she's on housing benefit and rents, she's band 3. We've been advised never to take her in. And that if she's made homeless she'll be housed faster. There are a lot more housing for people going for sheltered accommodation (over 65) than working age adults.

A friend has a parent in a quieter part of the country and she was instantly housed when she was made homeless. Here, from what I can see on the council website, it's only 2 years on the waiting list for an over 65 for a council flat.